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Compe&&ve Marketplace for Enterprise IT Projects

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Company Purpose
Titan enables buyers to procure be<er, cheaper, and faster IT by maximizing compe&&on among qualied suppliers

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Problem
Midmarket IT buyers lack the &me and exper&se to iden&fy, qualify, and price IT suppliers
- - - - Hire the rst local supplier iden&ed Do not thoroughly dene the scope of work Overpay due to insucient compe&&ve pressures Leads to mediocre, overpriced, and slow IT

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Solution
Titan is a marketplace that enables IT buyers to solicit compe&&ve bids from qualied IT suppliers
- - - - Qualied suppliers made discoverable na&onwide Bidding process properly denes scope of work Reverse auc&on determines the true market price Results in be<er, cheaper, and faster IT

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Why Now
IT has become a commodity
- 3rd party APIs handle most heavy liPing - Supplier costs have drama&cally decreased - Asymmetric informa&on keeps IT prices high

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Customer Profile
Midmarket IT buyers
- Annual revenues between $10M and $1B - IT projects cost between $50K and $10M - Small or nonexistent IT department

Regional IT suppliers
- Annual revenues between $1M and $100M - Quality suppliers limited by sales reach - Poten&ally funded startups
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Market Assumptions
Inputs for TAM, SAM, SOM, and 5-Year LTV
- - - - - - 195K U.S. Midmarket Companies 1 $9.3T Annual Revenue in U.S. Midmarket 1 6.7% IT Budget as Percent of Revenue 2 23% IT Services as Percent of IT Budget 3 34% Share of Market 4 10% Commission

1) 2) 3) 4)

http://www.middlemarketcenter.org/wp-content/uploads/2012/01/Middle_Market_Research4.pdf http://www.cio.com/article/151301/Information_Technology_Budgets_Which_Industry_Spends_the_Most_ http://www.gartner.com/it/page.jsp?id=2074815 http://blogs.barrons.com/techtraderdaily/2009/04/14/amazon-now-one-third-of-all-us-e-commerce/

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Market Size
Commission es&mates
- $60B U.S. Midmarket IT (TAM) 1 - $14B U.S. Midmarket IT Services (SAM) 2 - $5B Share of U.S. Midmarket IT Services (SOM) 3

Future growth
- Expand into Fortune 1K - Expand into interna&onal and government markets - Expand into more IT segments
1) TAM = ($9.3T Annual Revenue in U.S. Midmarket) * (6.7% IT Budget as Percent of Revenue) * (10% Commission) 2) SAM = (TAM) * (23% IT Services as Percent of IT Budget) 3) SOM = (SAM) * (34% Share of Market)

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Competition
Compe&ng marketplaces
- FedBid: High budget government procurement - Elance: Low budget consumer procurement

Dieren&a&on and compe&&ve advantages

- Focused on high budget enterprise IT procurement - Dual-sided network eects in winner takes all market - Intellectual property

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Product
Online marketplace for enterprise IT projects
- - - - - Buyers submit project descrip&on and requirements Compe&&ve bids solicited through reverse auc&on Bids ranked by price, speed, qualica&ons, etc Secure online processing of contracts and payments Buyer and supplier conden&ality

Intellectual property
- IT procurement technology - Online business processes
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Illustrative IT Projects
Asset Management Big Data Analy&cs Business Process Management Cloud Integra&on Content Management Customer Rela&onship Management Data Management Disaster Recovery Enterprise Resource Planning Financial Management Human Capital Management Marke&ng Management Mobile Development Moderniza&on Order Management Performance Management Product Lifecycle Management Risk Management Security Server Networking SoPware Development Supply Chain Management Virtualiza&on Web Development Workforce Management

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Business Model
Titan receives 10% commission
- $5K minimum commission - $230K 5-Year LTV / midmarket company 1

Supplier pays $1K for annual cer&ca&on

- Must meet business credit report benchmarks - Must have posi&ve references from past clients - Filters out unqualied suppliers

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1) 5-Year LTV = [($9.3T Annual Revenue in U.S. Midmarket) / (195K U.S. Midmarket Companies)] * (6.7% IT Budget as Percent of Revenue) * (10% Commission) * (23% IT Services as Percent of IT Budget) * (5 Years) * (Discount of 10% Per Year)

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Sales Model
Direct Sales

New Suppliers New Customer

TITAN
Inside Sales

Virtuous Cycle

Supplier References
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Marketing Model
Aliate program
- Aliates rewarded with 30% of commission - Enterprise sales professionals found on LinkedIn

A<rac&ng inbounds
- Self serve website with weekly best prac&ce webinars - Syndicated blog featuring client success stories

Host regular IT conferences around country

- Discuss major trends in midmarket IT - Promote new IT spending and brand awareness
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Team
Founder of PrePay (i/o Ventures) Lead Developer at AppMakr (Raised $1M) Duke, Economics

Middle Market Private Equity (6 years) Stanford, MBA (Arjay Miller Scholar) Duke, Electrical Engineering
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Why Us
Experience from both sides of the table
- Worked closely with midmarket IT Buyers at PE rm
o Overwhelmed CFOs tend to select rst local supplier o Projects typically run over budget and behind schedule o Companies maintain pipeline of $100k+ projects at all &mes

- Mobile applica&on developer

o 90% of work came from the same app template o Custom work went into template for next &me o $100k+ per project for commodi&zed work
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Financials
Monthly Revenue & Net Profit
$180,000,000 $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $$(20,000,000) 6 12 18 24 30 Month Net Revenue Net Profit 36 42 48 54 60 $6 12 18 24 30 Month 36 42 48 54 60 $400,000,000 $600,000,000 $1,000,000,000

Accumulated Cash Balance

$1,200,000,000

$800,000,000

$200,000,000

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Contact Us
Brian Schwartz 301-758-2342 brian@&tanbroker.com

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